Emerson has announced its agreement to sell Network Power to Platinum Equity and a group of co-investors. The transaction is valued at US$4 billion and Emerson will retain a subordinated interest in Network Power, according to the company.
“This agreement marks a major milestone in the strategic portfolio repositioning we announced last June,” said David N. Farr, chairman and chief executive officer at Emerson.
“By selling Network Power to Platinum Equity, we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company with significant opportunities for growth and profitability in our core served markets. We believe Network Power has a bright future ahead and Platinum Equity is well-positioned to help the company continue to thrive and realise its full potential.”
With revenue of approximately $4.4 billion in fiscal 2015, Network Power is a leading provider of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data centre and telecommunications industries.
The proposed sale marks Emerson’s second divesture to Platinum Equity in the last three years. In November 2013, Emerson sold a 51 per cent controlling stake in its embedded computing and power business, which Platinum Equity rebranded Artesyn Embedded Technologies.
Network Power will continue to be led by Scott Barbour, who has been executive vice president of Emerson and business leader for Network Power. The sale of Network Power is expected to close by December 31, 2016, subject to customary regulatory approvals.